SMEs can turn invoices into cash online with ApexPeak

The usual 90-day process can be done in 5 days, fastest.

 ApexPeak offers invoice-discounting services which allows small and medium-scale businesses to liquidate their invoices earlier than the expected encashment through third party invoice sales.

It allows these businesses to faster acquire working capital through ApexPeak’s digital services and faster processing which would usually take a lot longer in a traditional bank set-up.

CEO and co-founder of ApexPeak Gakim Solomons explains, “Invoice-discounting is nothing new but ApexPeak has managed to reinvent this financial instrument to be ready for the digital age. Banks usually take a very long time to do due diligence and rejecting many SMEs' requests. When they do approve the loan, they charge a high interest rate and by then it might be too late for the SME already.”

According to Solomons, their company digitally processes a thorough due diligence process where upfront, 80% of the amount of the invoices are advanced. The remaining percentage is distributed after the invoice is processed where only 2% discount fee is levied.

They also have insurance companies covering the counter party risk of the invoices which they claim makes their process “essentially risk-free”.

The business started when Gakim Solomons partnered with his college friend, a “serial technopreneur”, John Fearon to come up with a financial technology business.

Teaming up with 88mph, a Google-backed accelerator in South Africa, ApexPeak now caters to the SMEs loans market of Africa and South East Asia through their website.

According to them, the good mix of risk-free and hassle-free facets of their service will make banks offering traditional services take notice of their presence.

Solomons adds, “Robust vetting and process combined with automating standardised tasks and good risk management have contributed in making ApexPeak stand out from the crowd. With the right combination of technology, talent, experience and opportunity ApexPeak will disrupt the banking industry.”

The startup is already gearing towards expansion, raising up about $2.3M SGD and setting its sights on two major acquisitions in the finance technology space in the near future. They are also targeting to go public, claiming that they hope to release an IPO in 24 months.

The speed in which the startup has developed its company is also the same speed that it aims to serve its clients. The non-conventional financing methods offered by the company they say, not only gives them a good business set-up but also helps other good businesses to also prosper.

As Solomons put it, “A low interest rate environment in Asia has resulted in many investors looking for good risk adjusted returns. ApexPeak has been able to raise money from investors by offering investors the opportunity to obtain above average yields with no downside really. We will essentially aim to change the whole banking industry.”

________________________________________________________
Name of the company:
ApexPeak
Founder/Founders:
Nicholas Gan / Gakim Solomons / John Fearon
Website:
www.apexpeak.com
Major Investors:
Angels
Total funding at hand:
2.3M SGD
Target fund:
25M SGD
Source of funding:
Angels
Start of operation:
Feb 2012 

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